In first place among the frauds identified by INETCO, a company that provides transaction analysis and monitoring tools, there is identity theft, which is expected to increase exponentially this year, also due to the increase in smartworking solutions not supported by adequate security systems. This results in easier unauthorized access to sensitive data, with new systems making it more difficult to detect identity theft. In fact, cyber criminals have begun to build synthetic identities, mixing real and fictitious data to create a sort of puzzle that can take 12 to 18 months to build. A Frankenstein-identity with a name, a face, biometric data, credit references, capable of illegally making large sums of money.
The simpler but no less dangerous so-called CNP (card-not-present) scam in which you try to make a transaction without being in possession of the credit card used. It is estimated, in a mix of data and projections, that this kind of fraud could cause US losses of $ 130 billion between 2018 and 2023 alone. Stolen or lost cards, data shared too lightly, but also devices capable of reading physical cards and copying the data entered in ATMs and automatic pay stations: these are the methods used for this type of fraud, which are increasing now that payment methods cashless e contactless they made themselves the norm. And while in a physical store, in addition to having to present the card, you may also be required to show an identity document, in online transactions it is much easier to bypass the controls.
Then there is the credential theft, which allows criminals to log into online store accounts and make purchases as if they were the fully verified user. In particular, to circumvent the verification systems, the use of this method seems to have spread for online purchases to be collected in the store, in order to escape delivery controls. Or again: to gain access to corporate data, or interfere in transactions, there are malware that allow you to enter the middle of a conversation as a hub, intercepting transit data or diverting them to bypass security systems.
The increasingly broad refund and return policies and the inability to always verify the customer’s honesty have also led to the rise of a new kind of scam, which uses an intermediary to open, at the price of a small success fee, complaints for malfunctioning or never received products. In this way not only the product is received, but also the total or partial refund of the amount spent. According to forecasts, this kind of scam is bound to cost US traders $ 25 billion a year between now and 2025, up 41% year-over-year.
To protect ourselves, both as customers and as sellers, it is essential to have constant access to transaction data in real time, so as to identify suspicious movements immediately. Improvised ecommerce is more at risk of fraud: it is important to have tailor-made payment systems that adapt to the type of store and eliminate blind spots where it is easier for scammers to find the space to act. All without forgetting chand a less fluid user experience generates greater losses than fraud: security yes, but without vigilance becoming an obstacle. A recent Aite Group study found that sellers are losing 75 times more revenue from automatic denial of legitimate transactions by overly rigid security software than from fraud itself.